Software

How Financial Institutions Can Elevate the ATM Experience

Financial insitutions must deliver a compelling self-service banking experience to optimize the efficiency of retail banking operations. Read how you can enhance ATM journeys.

Photo: Diebold Nixdorf

January 21, 2026

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ATMs have long been the most visible touchpoint between financial institutions (FIs) and their customers. But today, they are more than just a convenient cash-dispensing machine—they’re an extension of a financial institution’s brand promise, an efficiency enabler, and a loyalty driver.

When banks and credit unions treat their self-service channels as strategic assets, they unlock opportunities to deepen relationships, delight customers, and run operations more efficiently.

Delivering on that promise requires more than just hardware. It calls for a mix of innovative services, seamless user experiences, integration across digital and physical channels, and rock-solid availability and security.

Expanding ATM Capabilities

Technological advancements have dramatically broadened the role of ATMs. Consumers now expect to bank anytime, anywhere, and they compare their ATM interactions not just with other banks but with the frictionless experiences they enjoy in retail and travel.

To meet these expectations, FIs need software-driven ATMs that go beyond “cash in, cash out.” For example:

Revenue-generating transactions: Multi-currency and dynamic currency conversion can be powerful in areas with cross-border traffic, transport hubs, or tourist zones.
Customer retention features: On-us customers appreciate being able to deposit into multiple accounts, pay loans, or settle utility bills without stepping into a branch.

When banks curate the right mix of transactions, they turn the ATM into a relationship-building channel rather than a cost center.

Serving SMBs with Smart Self-Service

Small and mid-sized businesses are a critical segment for most FIs—but often underserved at the ATM. Traditional teller-assisted deposits are inconvenient for business owners juggling time and staff, while drop-boxes delay funds availability.

Automated deposit solutions solve this by instantly crediting deposits, helping businesses manage cash flow more effectively.

The right devices also:

Support large bundle and coin deposits, reducing repeat transactions.
Function as cash recyclers, improving both deposit and withdrawal convenience while futureproofing investments.
Leverage software that validates each note for authenticity and fitness, reducing errors and fraud risk.

By addressing SMB pain points, banks and credit unions position themselves as indispensable partners.

Bridging Digital and Physical Banking

Customers don’t think in “channels”—they think in terms of tasks they want to accomplish. That’s why user experience is everything.

Modern ATMs should feel as intuitive as a mobile app. That means:

Omnichannel journeys: Customers, whether personal or business, can start a transaction on mobile (like setting up a deposit or withdrawal) and complete it securely at the ATM with a QR code or one-time password (OTP).
Personalization: Fast cash, preferred denominations, language choice, and digital receipts are now expected.
Inclusive design: Features like voice guidance, high-contrast screens, LED lights, or SoftADA (bringing the screen interface lower at the touch of a button) make banking accessible to all.
Expanded functionality: Contactless readers, passport scanners, and e-sign pads can extend ATM use cases into onboarding and Know your Customers (KYC) processes—saving branch staff time.

When ATMs evolve alongside digital channels, they become part of a seamless journey rather than a standalone utility.

Maximizing ATM Availability and Security

Few things frustrate customers more than an “out of service” sign. For FIs, downtime isn’t just an operational hiccup—it’s a brand-damaging moment that can push customers toward competitors.

It is important to benchmark capacity cassettes before choosing the devices you deploy. Opting for cash recyclers and enabling cash recycling will also contribute to higher availability, as dispense cassettes will be filled following deposits, minimizing empty cassette events. Additionally, outsourcing maintenance to a provider offering a totally data-driven, proactive service model ensures a reduction of breakdowns, faster incident resolution and higher device uptime.

Security is just as critical. Today’s ATMs must be protected from both physical and digital threats, including:

Multi-factor authentication.
Built-in resistance to skimming, explosive, and hook-and-chain attacks.
Cybersecurity features that evolve as fast as the threats.

Maximizing availability and security isn’t just about safeguarding assets—it’s about maintaining trust.

Partnering for Success

No financial institution has to tackle all this alone. At Diebold Nixdorf, we combine configurable devices, robust software, and managed services to create a holistic approach to self-service banking. Our Branch Automation Solutions help banks and credit unions optimize operations while delivering a modern, convenient, and secure ATM experience that keeps customers coming back.

Ready to transform your ATM channel into a strategic asset? Let’s start the conversation.

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Diebold Nixdorf

As a global technology leader and innovative services provider, Diebold Nixdorf delivers the solutions that enable financial institutions to improve efficiencies, protect assets and better serve consumers.

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